Nepal Oil Corporation has reduced the prices of petroleum products, effective from Saturday midnight.

The price of petrol has been cut by Rs3 while diesel and kerosene have also become cheaper by Re1 each. Consumers will now have to pay Rs165 for a litre of petrol and Rs152 for a litre of diesel and kerosene in Kathmandu, Pokhara and Dipayal.

Likewise, petrol will now cost Rs164 and diesel and kerosene Rs151 per litre in Surkhet and Dang. It will cost Rs162.50 for petrol and Rs149.50 for diesel and kerosene in Charaali, Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Dhangadhi and Birgunj.

Motorists may have to experience queuing for fuel once again as petroleum dealers have decided to go on strike by not buying fuel from Nepal Oil Corporation beginning today . They are trying to force through their demands for a hike in compensation for shrinkage loss as the current rate offered by NOC is inadequate.all the petrol pump in Kathmandu are closed and there are long line of vehicles waiting for petrols. Even the roads are empty , the most hassling road are free due to lack of vehicles on the roads having petrols.

Petroleum dealers have time after time, caused inconvenience to motorists in the name of exerting pressure on NOC to fulfil their demands. This is the third time they have resorted to this measure since they raised the issue of inadequate compensation for shrinkage loss.

Shrinkage loss refers to gasoline lost due to shrinkage and evaporation. As per NOC, shrinkage loss occurs in fuel shipments when they are transported from locations with a high temperature to cooler places.

According to the operators of gasoline stations, NOC has been compensating petroleum dealers for shrinkage loss at the rate of 8.75 litres per 1,000 litres of petrol. In the case of diesel, NOC regulation has considered an evaporation loss of 2.6 litres per 1,000 litres.

Meanwhile, NOC is holding its board meeting on Thursday in a view to address the concerns of the petroleum dealers. “The board meeting is likely to be considering the recent study report on shrinkage loss in order to prevent the possible short supply due the protests to be launched by the petroleum sellers,” an official at NOC said.